Expert: Karyn Foley - 5/31/2004

Question
Hi Karyn
I am a licensed acupuncturist looking to purchase a 2BR home through a lease purchase option and convert one BR into an acupuncture clinic.
I read on the internet a while back about a woman saying she "chose or got a bad realtor", but she didn't express why.
Could you advise me as to how to determine whether an agent is good or not? Would I need a certain type of agent, agency if I plan on running a business in the home...and, would I be just as well off purchasing a home direct from the seller in a classified ad?  Thank you very much.
Sincerely,

Michael D. Eidson, LAc.

Answer
Dear Michael:
 To find a good agent you should contact  three different companies that do business in the area in which you would like to move.  Tell the manager of each of the offices what you would like to accomplish, and to have the manager recommend a top agent for your area and for your needs.  Interview all three of the agents and ask them to tell you what homes in the area that they have sold during the past two years.  Ask for their resume, their professional standing in their company and in the industry, and for them to provide you with a list of the comparable sales in the area you are selecting.  
 Or, select three individual people who are big in the area (preferably from three different firms).  You can drive around the streets and see whose names are on the for sale signs.  You should have these three agents  tell you the same as in the above paragraph.
  Take some time on your own, before you selection, and go into Sunday open houses and get the lay of the land.  Read as much as you can, not only about what is going on in your area, but in real estate in general.
 Please make an appointment with the loan officer in your bank, or with a mortgage broker, and speak to them about the loan process.  They can also do a credit check for you, and give you a letter of pre-approval.  This letter is vital is the market today when there are more buyers than there are available properties.  You need to have an edge, and this letter is usually a prerequesite to making an offer.  The seller wants to see how qualified you are.
 You can also answer ads in the local newspapers.  However, I strongly suggest that if you make a purchase on your own without an agent's support, you hire a real estate attorney to direct you through the process.  There are too many pitfalls for the novice, and too many mandatory and important disclosure forms that you need to have.  The dollars you spend in this direction can save you problems and big money later on.  If you go on your own without an agent, do not hesitate to get a home inspector to evalauate the condition of the property's systems and appliances.
 One thing concerns me and that is that you will be using a residential home as a business.  Most cities now allow a home office, and can tolerate an occasional client that may come now and again.  But you intend to run a business that can be an intrusion and disturbance in the eyes of your neighbors.  Therefore, please call the city hall and inquire about the rules and regulations that may apply in your case.  You do not want to break the law and buy a house that may not work out the way you intend.  Let the real estate agents know of your plans as well.  Perhaps they can be of assistance to you, as could a real estate attorney.
 Good luck in their exciting endeavor.  Please let me know what happens, and if I can be of additional help to you.
 I wish you well!  KARYN FOLEY